Bill Ackman Buys Stake in Kraft (KFT)

Pershing Square’s Bill Ackman has joined Warren Buffett in owning the Kraft (NYSE: KFT) stock. He bought 2% of Kraft’s total shares.

Kraft shares rose in after-market hours post Ackman’s acquisition. This bodes well for Kraft. Kraft is expected to put up an offer for Cadbury (NYSE: CBY) on Tuesday. Last Friday was the last day of Kraft shares trading in US markets, and the higher the price of Kraft shares, the higher the value of the offer for Cadbury. Like Warren Buffett, Ackman is in favor of using a higher cash or debt component in the Cadbury bid. Talking with CNBC, Ackman said that the deal makes tremendous sense. He also said that Kraft is a cheap share.